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Europa Oil & Gas (Holdings) Plc on cusp of break even at US$30 a barrel

Published: 15:46 03 Oct 2016 BST

Europa Oil & Gas Holdings Plc (LON:EOG) is on the cusp of doubling production at the Wressle field, which will come on stream in 2017, turning the firm into a robust oiler.
So says chief executive Hugh Mackay. Speaking to Proactive's Andrew Scott, he said it will provide 150 barrels  a day net to Europa.
And on top of the 123 barrels a day produced from its other three fields, will double revenues.
It will mean the company will break even at US$30 a barrel.
That's quite an important metric for us and distinguishes us from many companies on AIM who can’t do that."
The company now has five offshore licences in Ireland, and excitingly over the next two to three years hopes to deliver half a dozen drillable targets -  any one of which could be a company maker.
Mackay also noted the arrival of the majors and supermajors now in the basin, which augurs well for Europa- one of the leading explorers in the  region.
For the Holmwood exploration well in the Weald basin, Surrey, Mackay is very excited, and confident of drilling in 2017.
What's also positive he said is the read -across from the Horse Hill well - just 12 km away, where 1300 barrels a day were flowed , which is good for an onshore well, he noted.
In the  12 months to July 31, Europa said group revenue amounted to £1.3mln compared to £2.2mln.
Cost of sales was cut by 33% and administrative expenses were 39% lower, the firm said.

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